AirPlay credited with winning Apple' movie market share in iTunes

Apple has resumed growth among online movie stores after spurt of competition blunted its market share last year, a recovery credited in part to the company's new AirTunes mobile integration feature.

Despite Apple's tiny increase in market share, growing from 64.9 to 65.8 percent in the first half of 2011 over the same period last year, "iTunes experienced the largest revenue increase growth among all online movie providers during the first half," noted research firm IHS iSuppli.

Much of iTunes success can be traced to the rising usage of Apples AirPlay system, which allows wireless video streaming to consumer electronic devices including televisions. This has expanded the reach of iTunes to new platforms, boosting sales of movies from the system.

IHS added "other factors that enhanced iTunes share included the growing installed base of the iPad and price promotions."

Survival of the fleetest

Last year, Apple's share of movie downloads fell from 74.4 percent to a 64.5 percent, according to data reported by IHS. That drop reflected a 60 percent expansion of the online movie market, as iTunes began competing with Microsoft's Zune Video store and Sony's PlayStation Store, alongside WalMart's acquisition and promotion of Vudu.

The successful launch of Microsoft's Xbox Kinect motion controller helped give it a bump in 2010, with Microsoft gaining 6.3 percentage points in the face of Apple's loss of ten.

However, over the first six months of 2011, Apple has regained a percentage point as Microsoft's video marketplace dropped by more than two. IHS noted that while Kinect helped improve sales of the Xbox, "which can access movies on the Zune Video Marketplace" the "impact of the surge since has dwindled, causing Zunes share to decline."

Sony's share of the online movie market has done even worse, dropping in share from 8.2 to 4.4 percent and ending up with less share than it had in 2009. IHS blamed Sony's losses on competition from Vudu as well as the security problems that caused Sony to shut down its PlayStation network during the period.

Amazon, which took direct aim at iTunes, only managed to grow its share of online movies from 4 percent to 4.2 percent.

IHS said the "new release on-demand" online movie business is "all about iVOD (internet Video on Demand)," noting that In the current economic climate, consumers are more interested in accessing movies than in owning them."

For this reason, the firm says that growth in EST (electronic sell through, or paid downloads) "has virtually stopped. Whatever small EST growth that is happening is coming from aggressive sales on iTunes, as well as discounting across major services."

IHS' figures don't include subscription services such as the popular Netflix plan, which allows users to pay a recurring fee to either mail back DVDs or, as the company has recently focused upon, download unlimited movies from its streaming catalog.

If you are using AirPlay, you have an AppleTV (if there are any non-AppleTV AirPlay video capable devices out there, they are a very small percentage). And if you have an AppleTV, why would you first rent a movie on your iPad/iPhone and then AirPlay stream it? Wouldn't you just rent the movie directly on your AppleTV?

The bump in movie sales is likely more due to people simply watching the movies directly on their iPads (or even just using the HDMI adaptor if they don't have an AppleTV). I think analysts like to tie their conclusions into some catch phrase or a particular technology (AirPlay, in this case), even if it's an unsupported linkage. Simply saying, "Apple has sold loads of iPads and people are watching movies on them" isn't sexy enough.

Airplay is wonderful and was well worth the wait. It's fun to "wow" the uninitiated.

AirPlay is cool and very useful. But would you watch an entire movie that way vs. just watching it directly from your AppleTV (either streaming from Apple or from your iTunes library)? Just curiuos if that's how you use it.

If you are using AirPlay, you have an AppleTV (if there are any non-AppleTV AirPlay video capable devices out there, they are a very small percentage). And if you have an AppleTV, why would you first rent a movie on your iPad/iPhone and then AirPlay stream it? Wouldn't you just rent the movie directly on your AppleTV?

The bump in movie sales is likely more due to people simply watching the movies directly on their iPads (or even just using the HDMI adaptor if they don't have an AppleTV). I think analysts like to tie their conclusions into some catch phrase or a particular technology (AirPlay, in this case), even if it's an unsupported linkage. Simply saying, "Apple has sold loads of iPads and people are watching movies on them" isn't sexy enough.

Yep, this does not compute. AirPlay is cool for gaming. But when many (or most) mid to high-end modern TVs are internet enabled with apps for Netflix, Hulu+, or connected to iTunes I see no compelling reason to use AirPlay to watch a movie.

If you are using AirPlay, you have an AppleTV (if there are any non-AppleTV AirPlay video capable devices out there, they are a very small percentage). And if you have an AppleTV, why would you first rent a movie on your iPad/iPhone and then AirPlay stream it? Wouldn't you just rent the movie directly on your AppleTV?

The bump in movie sales is likely more due to people simply watching the movies directly on their iPads (or even just using the HDMI adaptor if they don't have an AppleTV). I think analysts like to tie their conclusions into some catch phrase or a particular technology (AirPlay, in this case), even if it's an unsupported linkage. Simply saying, "Apple has sold loads of iPads and people are watching movies on them" isn't sexy enough.

Given the extremely limited storage of your iPad/iPhone, chances are you either streaming a rental or the movie exists on your Mac/PC. Either way, it would be better to get the movie to your AppleTV from one of those sources than having an iPad middleman.

But overall, the point is that, once again, the analysis does not support the conclusion. If one were to make an educated guess (vs the plain old guess this analysts made) you'd guess that it's simply a matter than people are watching movies on their iPads, of which Apple has sold far more of than AppleTVs. There is nothing to support an AirPlay effect, but the analyst felt the need to throw in a trademarked name or two to justify his paycheck. I wish my boss let me state a few odd facts and then make a completely unsupported conclusions. My job would be so much easier!

Yep, this does not compute. AirPlay is cool for gaming. But when many (or most) mid to high-end modern TVs are internet enabled with apps for Netflix, Hulu+, or connected to iTunes I see no compelling reason to use AirPlay to watch a movie.

yeah, you want to do something else with your iPad while watching anything from iTunes via AppleTV. or someone else is using the iPad in another room.

it's called "true multitasking."

but Screen Mirroring is very different. that's for stuff you want to make much bigger or, even more, share visually with others. you know, internet porn ... oh, I mean shopping catalogues. but seriously, it will be a true "killer app."

I use my AppleTV daily, but have never felt the need to use AirPlay to stream from the iPad to the AppleTV. I don't think it is AirPlay that has led to more people using iTunes Movies, but simply the fact that the AppleTV is now $99 so a lot more people are willing to buy one.

Having said that since upgrading from an original AppleTV to the 2nd gen model I have stopped buying movies from iTunes and primarily use Netflix.

I agree, AirPlay within the house is fun to play with but not much use. I can stream everything through the Apple TV without it. I have never tried it, but suppose I sync a movie onto my iPad, then visit a friend who has an Apple TV. Wouldn't I be able to stream the movie from my iPad to their Apple TV? Anyone try that?

Don't underestimate the Xbox. It gives Microsoft a huge advantage in the battle for the living room.

The biggest problem Apple has with the AppleTV is explaining to new people why they should spend their money. Once you buy one it is great but it's been hard to convince new people to take the leap. But people already know games. The Xbox is really a Trojan horse - you buy it as a games machine but then Microsoft can start using it to push other services like movies.

Don't underestimate the Xbox. It gives Microsoft a huge advantage in the battle for the living room.

I have a friend who bought a new HDTV and bought an Xbox to watch Netflix. That lasted a couple of weeks. Then he went out and bought an Apple TV. I guess someone coughed in the Trojan horse and gave it all away.

Don't underestimate the Xbox. It gives Microsoft a huge advantage in the battle for the living room.

The biggest problem Apple has with the AppleTV is explaining to new people why they should spend their money. Once you buy one it is great but it's been hard to convince new people to take the leap. But people already know games. The Xbox is really a Trojan horse - you buy it as a games machine but then Microsoft can start using it to push other services like movies.

True, if you're a gamer. If not, you probably wouldn't care to own an Xbox or a PS3. That's why AppleTV would be the way to go for many.

IMO Microsoft's success depends on their level of support of Ultraviolet. As I see it Microsoft's current market share is tied to the success of the X360, and if they attempt to go it alone they will get swamped by the other members of the group.

Alternatively, if they build Ultraviolet support into the Xbox Marketplace and bake this Marketplace into Windows 8 they should be able to maintain most of their market-share as well as be a part of the market-share growth of the Ultraviolet group.

I agree, AirPlay within the house is fun to play with but not much use. I can stream everything through the Apple TV without it. I have never tried it, but suppose I sync a movie onto my iPad, then visit a friend who has an Apple TV. Wouldn't I be able to stream the movie from my iPad to their Apple TV? Anyone try that?

Sure you could, as long as the friend will give you the login and password to connect to their Itunes Home Sharing.

Yep, this does not compute. AirPlay is cool for gaming. But when many (or most) mid to high-end modern TVs are internet enabled with apps for Netflix, Hulu+, or connected to iTunes I see no compelling reason to use AirPlay to watch a movie.

Unless you have a large collection of Movies and TV programmes on your Mac, like I do. I have a library of over 1,500 episodes and over 150 HD movies which I stream to the Apple TV in my living room and to the kids Xbox 360's.

You have no idea how right you are. Here is a scenario - kid goes to school, prof uses iPad to show stuff on screen, kid comes home showed to parents, parent poop their pants and want one too.

Now dad comes home from work, but he is not pissed this time, he is exited about what IT showed off for presentations and wats one at home.

All go to store, see that apple tv is just 99 and grab it. Of course they already have the iPad.

No need to wave at Xbox like an idiot, or wait till kids are done fragging. Just fire up the movie from ipad.

I think is gonna be huge boon for movie renting for iTunes.

So your basic premises are:
a) A kid gets excited seeing the AppleTV used as a wireless projector
b) The dad gets excited seeing the AppleTV used as a wireless projector
c) They'll finding it exciting to waste their wireless network's bandwidth by streaming a movie to an iPad and then redundantly streaming it to the AppleTV instead of just streaming directly to the AppleTV
d) Somehow since the AppleTV and Xbox are hooked up to the same TV, there won't be a need to wait for the kids to be done playing their game before playing the movie.
e) You don't understand that you can use the Xbox controller to navigate the entire interface, no Kinect arm waving necessary.

Slightly unrelated, but the PS3's current slogan is, "It just does everything." Maybe the AppleTV slogan can be, "It just doesn't do much."

Concerning AirPlay, I have a question related to the HBO GO service. I've tried to ask this question other places, but I've gotten conflicting answers. Is this or is this service not compatible with AirPlay?

I'm not much of a movie fan. But I'd planned on getting an AppleTV to go with my iPod Touch around the holidays. I would keep HBO mainly for the GO service, but only if it's compatible with the the AppleTV and AirPlay, just so I could catch up on some of the older series that I enjoyed the first time around.

I'm not interested in jailbreaks or configuring a myriad of cables - just AirPlay... a seemingly sweet & simple solution. Anyone?